• The bond market was jolted Thursday by weaker-than-expected January retail sales data that bolstered expectations for Federal Reserve interest-rate cuts starting in June.
• Treasury yields retreated further from year-to-date highs reached Tuesday, but failed to sustain the move amid lingering doubts about the potential for sticky inflation to delay rate cuts.
• The two-year, for example, fell as much as 8 basis points to just under 4.50% before erasing the drop. Likewise, derivatives traders priced in higher odds of Fed rate cuts this year, but the market failed to sustain them.